Aruba – An Appraisers Perspective My third assignment to Aruba recently with the first one in 2009. In many ways surprised to find much of Aruba remains the same. One of my favourite islands in the Caribbean – in large part due to the excellent infrastructure- good governance – stable democracy with little evidence of corruption. Aruba is essentially low density – with steady sunshine and tolerable traffic. With an average income of USD 28,924 (2014) per head, Aruba has a relatively high standard of living, which reduces social risks.
Aruba’s economy currently largely depends on the tourism sector. Over 85 percent of the economy depends on tourism, making Aruba the second-most tourism-dependent country in the world. This marked dependence on external economic conditions is a key reason why Aruban growth volatility has been among the highest in the region. Furthermore, the tourism sector is highly dependent on the US, as 54% of the tourists come from the US. Aruba is particularly susceptible to downturns in the U.S. and Venezuela. While the fibre optic internet has been around since 1995, to have such high speed internet service at a rental condominium indicates how widely the service has spread on the island. The roads, utilities and basic infrastructure is first world and impressive. We note that wind power now contributes about 15% of the energy with more wind farms planned along with Solar energy generation at the airport. Good potential for developing a renewable energy sector. Aruba has competitive wages and low cost of importing –Features strong tourism numbers both current and historical and consistently about 5% of the Caribbean market. Active hospitality real estate market – with large investment sales and mortgage activity evident. Excellent standards for quality construction.